^{Photo: The Straits Times}

Singapore Surges to Record High Amid Mixed Sentiment in Asia

Singapore’s stock market hit a new record high on Wednesday, defying broader regional volatility, as global investors digested fresh remarks from U.S. Federal Reserve Chair Jerome Powell regarding the future of interest rates and the impact of trade policies.

The Straits Times Index (STI) rose 0.45%, reaching a new peak of 4,008.85, according to LSEG data. The rally marked a significant milestone for Singapore equities, which have seen sustained momentum from investor inflows into defensive sectors such as financials and real estate.

Powell’s Comments Shake Global Markets

Investor sentiment across Asia was shaped heavily by Fed Chair Jerome Powell’s statement on Tuesday, in which he suggested that the central bank would have already begun cutting interest rates if not for the tariff policies pursued by former President Donald Trump.

Powell’s remarks sparked fresh debate on the timing and scope of potential Fed rate cuts, highlighting how geopolitical moves—including protectionist trade measures—are influencing global monetary policy more than ever.

Asia-Pacific Markets Diverge

While Singapore soared, most other major Asian indices posted mixed or negative performances, highlighting the fragile sentiment across the region.

• Japan’s Nikkei 225 slid 0.56% to close at 39,762.48, while the broader Topix declined 0.21% to 2,826.04. Investors in Japan reacted cautiously to slowing global chip demand and ongoing yen weakness.
• In South Korea, the Kospi fell 0.47% to 3,075.06, while the Kosdaq slipped 0.19% to 782.17, reflecting profit-taking in technology and biotech shares.
• Australia’s S&P/ASX 200 advanced 0.66%, ending at 8,597.7, driven by strength in the mining and energy sectors as global commodity prices showed resilience.
• In Hong Kong, the Hang Seng Index climbed 0.73%, while China’s CSI 300 remained largely flat at 3,943.68, as investors awaited fresh policy cues from Beijing amid lingering economic softness.

Wall Street Ends Mixed, Tech Stocks Retreat

In the U.S., major indexes wrapped up the previous session with mixed results, as enthusiasm around mega-cap tech stocks cooled:

• The S&P 500 slipped 0.11% to 6,198.01.
• The Nasdaq Composite fell 0.82% to 20,202.89, reflecting a pullback in high-growth technology names.
• The Dow Jones Industrial Average, however, stood out with a robust 0.91% gain, adding 400.17 points to close at 44,494.94, buoyed by strength in consumer staples and financials.

Meanwhile, U.S. stock futures edged higher during Asian trading hours, indicating a cautious but slightly optimistic tone heading into the next Wall Street session.

Final Outlook

While Singapore's equity market is showing remarkable strength, broader Asia is grappling with monetary uncertainty, tariff impacts, and tech-driven volatility. The latest comments from Powell have only added another layer of complexity, prompting investors to recalibrate expectations for global growth and central bank policy.

For now, investors will closely monitor U.S. inflation data, central bank signals, and trade-related developments, all of which are likely to dictate near-term market direction in Asia and beyond.